Implementation (optional): [Added if BIP passes]
We place 10% of our ETH (24.5) into a steady Curve pool, generating yield and acting as a reserve tank for our treasury.
This is a proposal suggesting that we put 10% of our capital (24.5 ETH) to work using the Curve stETH pool. This should provide a steady APY and ensure we have stable passive incoom in ETH, while also generating $LDO and $CRV tokens. Curve is also a DeFi stalwart and is considered to be very safe.
The pool can be found here
Below are the numbers at the time of writing:
What to do with these governance tokens can be deliberated later, unless the DAO members wish to discuss and implement a plan for this alongside this proposal. If so, then we can amend this proposal when it goes for a formal proposal based on a poll that can be executed in the comments.
This also gives us exposure to staked ETH via the stETH token. These stETH tokens will generate their own income in time, especially post ETH2 merger.
245 ETH is sitting idle in our wallet, let’s put it to work. This also gives us exposure to staked ETH via the stETH token.
We fund the CRV stETH pool with 24.5 ETH (10% of our Honeypot) where we will generate APY on the ETH:stETH pair, $CRV tokens, and $LDO tokens
We should generate returns for bear holders, otherwise why do we have such a treasury? While I suspect any trading of NFTs (as proposed in defijesus’ post) will likely generate more income, this will generate a steadier flow of incoom and can act as a reserve tank, that we can largely forget about.
Copyright and related rights waived via CC0.
It’s come to my attention that I should have provided some info on how Curve works for those of us that didn’t start in the DeFi world. Below are two links that I think explain things pretty well, and do a better job than I ever could.
So it seems we have a couple of good pieces of feedback from the community that largely align with my idea (here and Discord), but not necessarily my implementation. Most specifically, it looks a bit like this:
@rootulp makes a good point, we can effectively do this by just swapping for stETH and hodling, as it’ll offer similar returns, offers less smart contract risk exposure, and requires less hassle from us from a management perspective.
@Leach brings up a good point, and something we should certainly decide on. Perhaps this is worth a town hall? For this sentiment check though, I’d say let’s just assume this is the equivalent of a US Treasury bond. Buying into stETH will effectively be risk-free, will produce a steady return (currently 5% or so) and will act more as a piggy bank for us.
My original intent here is to be less of an investment and more of an insurance policy, giving us a backstop to lean on (or ideally forget about because we’re doing well elsewhere).
I also see more desire to use more of the treasury on this measure. So I’m going to also propose we bump this to 32 ETH (~13%, and more symbolic to a full-on validator) and only buy/hodl stETH instead of mucking about with Curve.
Sentiment Check: Put forward formal proposal to invest in stETH
- hodl stETH at 10% of honeypot
- hodl stETH at 5% of honeypot
- nah bruh